Tether’s last stand? GENIUS Act leaves USDT with 3 doors AND a ticking clock

• The Genius act forces handcuffs to comply, leave the US or start a new Stabbenecoin.
• USDC may benefit, but the dominance on the market will not move overnight, despite the regulatory advantage of Circle.

American legislators draw a hard line in terms of brilliant act.

Bonds [USDT]The world’s largest and most controversial issuer in the world, now facing a big choice: follow strict new standards, start a fully transparent alternative, or finish the US market completely.

Given the window 18-36 months to meet the requirements or to face a potential ban, another chapter in Tether’s high betting story could redefine the landscape of stablecoin, as we know it.

Is the genius act to finally turn?

WITH Genius Act He approached closer to becoming the law, the most commonly used stabnecoin stares at the American clock of compliance with regulations that may not be able to defeat.

Senator Rhode Island Jack Reed is the goal of the sugar factory. During Comment In support of the bill, he named Tether directly and added,

“This stablecoin is called” Tether “and is the largest recipient of this law … TheTher has never passed the audit and this law would not require it.”

He added

“North Korea, Russian weapons traders, people traders, terrorists and more.”

For the context, the bill requires complete audits, transparent reserves, capital pillows and strict supervision. Tether, which has long avoided these obligations, must now select: to adapt, terminate or run a fully compatible product.

The company had a problem relationship with the US regulatory bodies. In 2021 she settled with the General Prosecutor in New York.

The case concerned that USDT was not fully supported. Tether paid a fine of $ 18.5 million and was forbidden to run in New York. Since then he has published a quarterly confirmation of his reserves.

But Tether has never finished a complete independent audit. This remains the main red flag. The Genius Act now brings this problem back to the center of attention.

The question is now whether the US wants transparency – it is whether Tether can survive.

Three doors and ticking clocks

The law on genius leaves handcuffs with three possibilities.

First, meet: Accept complete audits, implement strict AML/KYC programs and create a technique for freezing tokens on command.

Secondly, completely end the US – a playing book that followed in Europe after Mica forced strict licenses and transparency. But leaving the American deep liquidity and institutional capital comes at sharp costs.

The third option? Start compatible stablecoin only in the US. The CEO Paolo Ardoino indicated this earlier and said that the new product would be “adapted to domestic needs”, unlike USDT, which serves global subordinate markets.

Yet this route also has risks – angry brand, invites control and does not guarantee legislative goodwill. Yet the size of the market in Tether could cause lawmakers to be more willing to negotiate than to punish.

If not, who did?

Heritage commands 62% Stablecoin Market – More than 25% Double Circle.

But with the brilliant law that tightened the loop, the USDC regulatory strategy could pay off. As an issuer compatible with the US, Circle can lure institutional capital and users looking for safer rails.

Yet the charts tell us that dominance will not move overnight; Compliance is not the same as the market capture.

Stablecoins can only charge 1.1% of the US offer of the dollar, but the spring is rapidly expanding.

What happens to Tether (and who fills in the gap if it remembers) could very well shape the future of digital dollars.